DA IN TALKS WITH KOREAN FIRM TO BUILD AGRI MACHINERY COMPLEX IN PH

The Department of Agriculture (DA) is in talks with Korea Agricultural Machinery Industry Cooperative (KAMICO) for the establishment of an agriculture machinery complex in the Philippines.

In a statement on Tuesday, the DA said that a high-level delegation led by Secretary Francisco Tiu Laurel Jr. early this month went to South Korea to strengthen agricultural cooperation between Manila and Seoul as well as secure investments crucial for the country’s agricultural modernization efforts.

The DA said Tiu Laurel discussed with KAMICO officials some fiscal incentives to be granted as it urged the Korean firm to build the Korea Agriculture Machinery Complex (KAMIC) in the Philippines.

The Agriculture chief cited incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law such as exemptions from local taxes and business permits for a specified period, alongside duty exemptions on imports of capital equipment, raw materials, and spare parts.

Moreover, the DA said products to be imported under the KAMIC project will benefit from favorable tariff arrangements under the CREATE Law “which will further bolster the initiative's economic viability.”

The Agriculture Department said Tiu Laurel told KAMICO that the agency is coordinating with national and local agencies to finalize the site for KAMIC, with potential locations being considered in Nueva Ecija or Quezon. 

Apart from the KAMIC project, the DA and KAMICO are also planning to develop solar-powered dryers with a capacity of up to 630,000 metric tons of palay annually per machine. 

“This development is critical as the National Food Authority faces significant gaps in drying capacity, particularly during the wet season, with upgrade plans falling short of national requirements,” the DA said, noting that current plans will only boost NFA’s drying capacity to 180,000 metric tons, which is still short of the required 495,000 metric tons.

The DA added the Korea International Cooperation Agency (KOICA) and the Philippine Center for Postharvest Development and Mechanization (PhilMech) are in collaboration to establish an agriculture machinery institute in the Philippines. 

“This initiative aims to enhance local manufacturing capabilities to better suit the diverse geographic conditions of Philippine agricultural lands,” it said.

“The ongoing dialogues and initiatives underscore a pivotal moment in enhancing the Philippines' agricultural capabilities, highlighting the strategic partnerships and investments crucial for sustainable agricultural development,” it added. —VAL, GMA Integrated News

This article DA in talks with Korean firm to build agri machinery complex in PH was originally published in GMA News Online.

2024-06-25T07:05:21Z dg43tfdfdgfd